A company has a new plant A and an old plant B in the same metropolitan area, each with a capacity of 12 units of product per month. Fixed expense at A is 40,000 per month and at B are 20,000 per month. Variable expense per month at A is Php1,000x? , where N = the number of 2 units produced. At B it is Php2,000 x ? , where M is the number of units produced. At present 2 the sales have been established at 14 units per month with each plant producing 7 units. Should the interplant load be redistributed? Why? How

Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 162,000 kilometers during a year, the average operating cost is 13.2 cents per kilometer. If a truck is driven only 108,000 kilometers during a year, the average operating cost increases to 16.6 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a + bX. 3. If a truck were driven 135,000 kilometers during a year, what total operating cost would you expect to be incurred? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Variable cost Fixed cost Required 3 Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. (Do not round your…

A food processing plant has fixed charges, overhead, and general expenses equal to $3,000,000 and they are independent of production rate. The variable cost of the plant equals to 40% of the total annual sales. Currently the plant operates at 75% capacity and has total annual sales of $8,000,000. The selling price is 10 S/kg, and the income tax is 30%. Calculate: a) the production rate at breakeven point; b) net profit at full capacity

The factory producing ornaments has a production capacity of 1 million units/year. 750 thousand units/year production is planned for 2017. Since the sales value of a trinket is 0.7 $; Fixed expenses = 2300 $; Variable expenses = 0.2 $ / unit. How many productions need to be made to make a profit of 35000 $?